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Summary of Highlights
- Kadimastem addresses the global ALS therapy market, which stood at $53M in 2016 and is expected to grow to between $468M and $840M million by 2021, as new therapies enter the market.
- According to the company, ALS also has a heavy economic burden with estimated healthcare expenditure at $6B p.a. in the US alone.
- The company expects to complete phase I/IIa clinical trials by August 2020. If it is able to demonstrate the efficacy and safety of AstroRx in treating ALS patients, it can further evaluate its AstroRx therapy for treating other neurological disorders.
- Research suggests that astrocytes can play a positive role in Alzheimer's disease, Parkinson's disease, multiple sclerosis and epilepsy – diseases with no cure and pressing unmet needs.
- The market for insulin is expected to grow at a CAGR of 8.3% and reach $43.6 billion by 2021. Although the market is highly competitive, we assume there is room for innovative companies, to enter and grow.
- The company is developing its diabetes program in collaboration with French based medical device manufacturer Defymed.
- The companies' plan to conduct a joint proof of concept pre-clinical test to combine the former's stem cell derived - islet-of-Langerhans-like cell clusters (insulin secreting beta cells) with the latter's medical device (MailPan) and evaluate the efficacy of the combination in treating diabetes.
- We estimate the company's equity value at NIS 52.11M ($14.64M) corresponding to a target price ranging between NIS 0.77 and NIS 0.93; a mean of NIS 0.85
- 2019 will be a crucial year for Kadimastem with the forecasted release of one early-stage clinical trial results and a POC trial, both which have the potential to impact the company's strategic position within the stem cells domain.
- We see both short and long term investment potential in Kadimastem stock
About the company - Kadimastem Ltd. (hereinafter "Kadimastem" or "the company") is a clinical stage biopharmaceutical company that specializes in developing different types of human body cells (known as differentiated cells) – such as neural cells (e.g. oligodendrocytes and astrocytes) and insulin secreting beta cells, derived from human embryonic stem cells. The company has its technological platform and two current stem cell based therapies in research phase – AstroRx (consists of astrocytes, a type of brain cell) and Encapsulin (insulin secreting beta cells) for treating amyotrophic lateral sclerosis (ALS) and diabetes respectively.
About Frost & Sullivan
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SOURCE Frost & Sullivan